US Treasury Secretary Scott Bessent informed lawmakers that a new estimate of when the country will run out of cash to pay its bills is forthcoming.
Cash Flow Forecast
Bessent noted that the Treasury is still accounting for the influx of annual tax payments that arrived by the April 15 filing deadline. These receipts will help determine the so-called X-date—the day the government runs out of cash, prompting extraordinary measures to keep paying its bills.
Connection to Debt Ceiling
On Capitol Hill, the deadline holds significant importance. Republican leaders have tied their sweeping bill covering tax cuts, border measures, and energy policy to increasing the debt ceiling, planning to push it through the House with GOP votes alone before the X-date arrives. Bessent pledged to update Congress within the first half of May.
Digital Dollar Commentary
Regarding the digital dollar, also known as CBDC, Bessent stated that digital assets should belong in the private sector and expressed his disagreement with the idea of a Federal Reserve central bank digital currency.
Bessent emphasized the need to raise the debt ceiling and the potential risks associated with missed payments, which could have serious repercussions for global credit markets and American households.
